Before we delve into the dropshipping guidelines that sellers on Amazon can use, we first need to define what drop shipping is. So, what exactly is a dropshipping business model and how does it work? Amazon Dropshipping works like this:

  1. You as a seller list your items on your Amazon seller page without necessarily holding any physical inventory, then
  2. When an order comes in, you simply notify your dropshipping supplier and they’ll be the ones to fulfill your orders for you.

It’s that simple. This is the basic idea of dropshipping. However, Amazon has written a policy that contradicts some aspects of this business model. Dropshipping, or allowing a third party to fulfill your customer’s orders, is generally accepted on Amazon. You just need to comply with Amazon’s policy to avoid any consequences.

Amazon Dropshipping Policy

Amazon requires its sellers who wish to fulfill orders using a dropshipper to:

  • Be the seller of record of their products;
  • Identify themselves as the seller of their products on all packing slips and other information included or provided in connection with them;
  • Be responsible for accepting and processing customer returns of their products; and
  • Comply with all other terms of their seller agreement and applicable Amazon policies.

And here are the ones that are forbidden by Amazon Dropshipping policy:

  • Purchase products from another online retailer and having that retailer ship directly to customers; or
  • Ship orders with packing slips, invoices, or other information indicating a seller name or contact informa